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14 February, 07:57

If the liabilities of a company increased $112,000 during a period of time and equity in the company decreased $38,000 during the same period, what was the effect on the assets?

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  1. 14 February, 08:43
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    Answer: Assets increases by $74,000.

    Explanation:

    Given that,

    Liabilities of a company increased = $112,000 during a period of time

    Equity in the company decreased = $38,000 during the same period

    Assets = Liabilities + Owners' Equity

    = $112,000 + ($38,000)

    = $74,000

    Therefore, Assets increases by $74,000.
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